Elon Musk would have to fork out several billion pounds to purchase Liverpool (Image: AP)
Tech visionary has been advised that it would cost him upwards of £ 8 billion ($10bn) to take over the reins of Liverpool. Elon’s father, Errol Musk, has, which has been under the stewardship of the Fenway Sports Group (FSG) since 2010.
Although FSG is amenable to the idea of fresh investment, there are no current plans to put the club up for an outright sale. Liverpool has been pegged with a valuation in the region of £4bn to £4.5bn, but with FSG not actively seeking to sell, Musk may well be compelled to make an even more substantial bid.
Expert on football finances Dr Rob Wilson, who previously held a post as Professor of Applied Sport Finance at Sheffield Hallam University, considers that Musk, renowned for streamlining businesses – as evidenced by the job cuts at his aerospace firm X, might aim to make similar efficiency savings at Liverpool. He expressed such views during an interview with.
Dr Wilson noted Musk’s inclination for control in his business ventures, which could present complications. “Given the profile of the team, especially with its current EPL form, it’s unlikely that they’d want to hand over full control,” he stated, reports . “That might be a sticking point for Musk – his major investments signal his intent for control.
“The value of LFC currently sits around the £4-4.5 billion mark, someway behind arch-rivals Manchester United. A reinvigorated LFC, with new investment, playing success, new sponsors and a more cost effective staff base (including players) could see the club push on toward a value surpassing £5 billion in the short term.
“Much like United, a $10billion valuation in the US for the club, or £8-8.5billion back in the UK, wouldn’t be out of the question if everything aligns like it needs to and they capitalise on new opportunities and trophy success.”
The Tesla billionaire is the wealthiest individual in the world (Image: Getty)
His potential purchase of Liverpool would no doubt get a mixed reaction if it were ever to become a reality. The 53-year-old, who is politically linked with Donald Trump, the US President-elect, ranks as the richest person in the world with a staggering net worth of £343bn ($425.2bn).
However, Dr Jones says any sort of investment from the wealthy businessman would make minimal difference due to the game’s stringent financial rules. He added: “Musk is a move-fast-and-break-things disrupter but he wouldn’t be able to make an immediate impact on Liverpool as he’d like.
“For Liverpool the reality is that any investment would make little difference. While fans continue to beg owners to spend more, the harsh reality is that’s not achievable in a world of PSR [profit and sustainability].
John W. Henry purchased Liverpool FC in 2010 (Image: Getty)
are a financially well managed club and there is no point in jeopardising that for the sake of appeasing fans who don’t care about the economics of a team. Successful businesses, like Tesla, SpaceX and X exist because they adhere to smart business principles and do not plunge themselves into financial instability.
“His interest might also scare off other would-be investors, such is his financial prowess and it’s unlikely that the club valuation will go much higher as the sensible option would be to pull out of any race, rather than get caught up in a bidding war.”